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Amendments to the Federal Law No.127-FZ “On insolvency (bankruptcy)” concerning the bankruptcy of individuals came into force today.
The amendments state that an individual can be declared bankrupt if his/her debt exceeds 500,000 rubles and payments to reduce the debt have not been made for more than three months. Cases of individual bankruptcy will be heard by an arbitration court. The debtor him or herself or a receiver or authorised agency can apply to court for an individual to be declared bankrupt.
If the debt exceeds 500,000 rubles, the debtor is required to apply to an arbitration court to request bankruptcy. If the debt is less than 500,000 rubles, but the debtor is unable to meet the payment schedule to creditors, he or she has the right to apply to a court for bankruptcy.